712 F. App'x 376
5th Cir.2017Background
- Michael Dewayne Williams, a Caddo Parish Commissioner, incorporated SWAG Nation USA to run youth programs; his fiancée Mary Hughes was SWAG Nation’s treasurer. Williams did not disclose his connection to SWAG Nation when moving and voting for a $100,000 parish appropriation for the program.
- SWAG Nation contracted with the Parish Commission to receive $350 per participant after programs concluded; SWAG Nation received at least one parish payment and later other transfers.
- Williams obtained and used a debit card issued in Hughes’s name to withdraw funds from SWAG Nation’s account; total debit charges presented at trial were $8,590.68.
- Williams suggested and arranged a $9,000 transfer from Words in Action (itself a recipient of a Parish grant) to SWAG Nation when SWAG Nation’s account was negative; $6,100 of that transfer was never repaid.
- Williams was convicted by a jury of eleven counts of wire fraud under 18 U.S.C. § 1343, sentenced to 14 months imprisonment, and ordered to pay $8,584.68 restitution to the Parish Commission. He appealed, challenging sufficiency of the evidence, admission of the Words in Action transfer, a claimed variance from the indictment, and the restitution order.
Issues
| Issue | Plaintiff's Argument (Government) | Defendant's Argument (Williams) | Held |
|---|---|---|---|
| Sufficiency of evidence for wire fraud | Evidence showed a scheme by concealment (failure to disclose his financial interest) and intent (use of Hughes’s card, arranging transfers, his admission), so a rational jury could convict. | No sufficient proof of fraudulent intent or scheme to defraud the Parish Commission. | Affirmed: evidence sufficient to support wire fraud convictions. |
| Admissibility of Words in Action transfer | The transfer was intrinsic to the charged scheme (same funding source, arranged by Williams to replenish SWAG Nation and conceal fraud) and therefore admissible. | The transfer was extrinsic and should have been excluded under Rule 404(b) as not part of the alleged scheme. | Affirmed: district court did not abuse discretion; transfer evidence was intrinsic. |
| Material variance from the indictment | No variance because the Words in Action transfer was intrinsic to the charged offense and part of the scheme presented to the jury. | Admission of the transfer evidence created a prejudicial variance from the indictment. | Affirmed: no material variance; claim fails. |
| Restitution to Parish Commission | Restitution appropriate because Williams’s fraud led to the appropriation and identifiable victim status. | Parish Commission suffered no pecuniary loss (it received contracted services); restitution therefore improper. | Reversed in part: restitution order vacated because the Parish Commission was not shown to have suffered a direct pecuniary loss. |
Key Cases Cited
- Jackson v. Virginia, 443 U.S. 307 (establishes standard for reviewing sufficiency of the evidence)
- Pasquantino v. United States, 544 U.S. 349 (recognizes concealment of material facts as fraudulent misrepresentation under federal fraud statutes)
- Freeman v. United States, 434 F.3d 369 (distinguishes intrinsic vs. extrinsic evidence for admissibility)
- United States v. Harris, 821 F.3d 589 (wire fraud elements and loss principles applied in funding/contract contexts)
- United States v. Klein, 543 F.3d 206 (restitution focuses on victim’s pecuniary loss, not defendant’s gross gain)
- United States v. Crawley, 533 F.3d 349 (permitting restitution tied to a victim’s loss where benefits conferred were illegitimate due to fraud)